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Caterpillar to Increase Ownership in ASV

12 July 2000

18 Months After Original Investment, CAT to Invest Additional Millions

    GRAND RAPIDS, Minn., July 12 ASV Inc. today announced the signing of a non-
binding letter of intent with Caterpillar Inc. that calls for Caterpillar to 
make an additional investment in ASV.  Caterpillar is expected to purchase an 
additional half million shares at $18 per share, increasing its ownership in the 
northern Minnesota firm to approximately 15 percent.  The proceeds will help 
fund ASV participation in new product development programs.

    ASV designs, manufactures and sells all-season, track-drive vehicles and
related accessories and attachments.  With its patent-pending Maximum Traction
and Support System(TM) undercarriage, ASV leads all rubber-tracked,
all-purpose crawlers in technology and innovation.  ASV's primary product, the
Posi-Track, traverses nearly any terrain with minimal damage to the ground,
making it effective in industries such as construction, landscaping and
agriculture.

    Caterpillar is the world's largest manufacturer of construction and mining
equipment, diesel and natural gas engines and industrial gas turbines.  The
company achieved 1999 sales and revenues of $19.7 billion.